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Zhu Wenqian

Chinese toymaker Pop Mart reported strong annual growth in revenue and net profit for 2025, but not enough to alleviate investor fears that the company remains too reliant on the Labubu phenomenon.
Annual revenue jumped 184.7 per cent from a year earlier to 37.12 billion yuan (US$5.4 billion), while net profit surged 284.5 per cent to 13.08 billion yuan, the company said on Wednesday.
However, its Hong Kong-listed shares plunged 22.5 per cent to HK$168.30 on Wednesday, marking the biggest drop since April 2025.
“We think Pop Mart’s 2025 revenue and earnings growth have likely missed the market’s consensus estimate, with material slowdown in the fourth quarter amplifying investors’ concern on the durability of top IPs [intellectual properties],” said Jeff Zhang, an equity analyst at Morningstar.
“A pullback in dividend payout ratio to 25 per cent in 2025 from 35 per cent in 2024 is another negative factor. We think it has likely missed buyside consensus for 2025, with conservative growth guidance for 2026 weighing on investors’ confidence.”
The company said 17 IPs recorded sales of more than 100 million yuan in 2025. Revenue from The Monsters, which includes Labubu, soared 365.7 per cent to 14.16 billion yuan from a year earlier.
“We think the Labubu frenzy has yet to cease, as The Monsters IP revenue grew over 350 per cent in 2025,” Zhang said. “Accordingly, Pop Mart’s reliance on The Monsters and Labubu lingers, with a 38 per cent mix of revenue, rising from 35 per cent in the first half of 2025.”
Morningstar expected it to take more time for Pop Mart to effectively diversify across different IPs, Zhang added.

Pop Mart said it aimed to maintain a growth rate of no less than 20 per cent this year, by continuing to increase investment in Labubu and launching more products. Labubu would continue making global appearances, including the World Cup in June and the 100th Macy’s Thanksgiving Day Parade in the US in November, it said.
The company also planned to release a line of small home appliances with Chinese e-commerce firm JD.com next month, and would roll out a dessert business at its physical stores in the first half of the year.
Wang Ning would remain acting chairman and CEO, the company added.
Pop Mart and Sony Pictures Entertainment last week announced a feature film starring Labubu to extend its IP value. A script was in development, and the film would mix live action and computer-generated imagery, Pop Mart said.
“Other select IPs such as Twinkle Twinkle have seen stellar top-line growth, reflecting their expanding global prevalence,” Zhang said. “Pop Mart has also doubled down on the licensing business and theme park operations, but we think execution risks remain high.”
Construction of phase 1.5 of the Pop Land theme park in Beijing was progressing smoothly, and was expected to open this summer, the company said in its annual results briefing.
Phase 2, focusing on IP “worldbuilding” and upgraded visitor experiences, was in the planning stages, with groundbreaking expected in 2027, said chief operating officer Sid Si.
The company said global momentum had accelerated, with all four regions achieving triple-digit growth, owing to IP diversification and broader market penetration.
Greater China led the way, with revenue surging 134.6 per cent to 20.85 billion yuan, making up 56.2 per cent of total sales. It was followed by Asia-Pacific excluding China, then the Americas, and then Europe and other regions, according to the earnings report.
The company operates 72 stores in the US and plans to exceed 100 this year, including New York City stores in Times Square and on Fifth Avenue in the fourth quarter.


Pop Mart said it would strengthen cooperation with TikTok in the US to further drive online sales, adding that the North American market boasted significant room for growth.
Globally, the company ran 185 overseas stores by the end of last year, an increase of 95 from a year earlier. It also launched live streaming sessions in local languages.
Previously focused on overseas capital cities, Pop Mart said it planned to expand into more overseas cities, including second- and third-tier cities.


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Labubu and The Monsters series make up 38 per cent of 2025 revenue, while conservative growth guidance for 2026 weighs on confidence


Labubu and The Monsters series make up 38 per cent of 2025 revenue, while conservative growth guidance for 2026 weighs on confidence.


Pop Mart shares dive despite soaring profit as investors fear Labubu dependence

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Labubu and The Monsters series make up 38 per cent of 2025 revenue, while conservative growth guidance for 2026 weighs on confidence

Labubu and The Monsters series make up 38 per cent of 2025 revenue, while conservative growth guidance for 2026 weighs on confidence